Pharmaceutical Industry in India

Pharmaceutical Industry in India is one of the largest and most
advanced among the developing countries. It provides employment to
millions and ensures that essential drugs at affordable prices are
available to the vast population of India. Indian Pharmaceutical
Industry has attained wide ranging capabilities in the complex field of
drug manufacture and technology. From simple pain killers to
sophisticated antibiotics and complex cardiac compounds, almost every
type of drug is now made indigenously.

Indian Pharma Industry is playing a key role in promoting and
sustaining development in the vital field of medicines. Around 70% of
the country's demand for bulk drugs, drug intermediates, pharmaceutical
formulations, chemicals, tablets, capsules, orals and vaccines is met by
Indian pharmaceutical industry. A number of Indian pharmaceutical
companies adhere to highest quality standards and are approved by
regulatory authorities in USA and UK.

Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units and is very top heavy. The leading 250 pharmaceutical
companies control 70% of the market with market leader holding nearly 7%
of the market share. There are also 5 Central Public Sector Units that
manufacture drugs. These units produce complete range of
pharmaceuticals, which include medicines ready for consumption by
patients and about 350 bulk drugs, i.e., chemicals having therapeutic
value and used for production of pharmaceutical formulations. India is
largely self-sufficient in case of formulations. More than 85% of the
formulations produced in the country are sold in the domestic market.
Some life saving, new generation under-patent formulations are imported,
by MNCs, which they market in India. Over 60% of India's bulk drug
production is exported. The balance is sold locally to other
formulators.

Pharmaceutical Industry in India has been de-licensed and industrial
licensing for most of the drugs and pharmaceutical products has been
done away with. Manufacturers are now free to produce any drug duly
approved by the Drug Control Authority. Indian pharmaceutical industry
got a major boost with the signing of General Agreement on Tariffs and
Trade in January 2005 with which India began recognising global patents.
After recognizing the global patent regime the Indian pharma market
became a sought after destination for foreign players.

India holds the lion's share of the world's contract research business
as activity in the pharma market continues to explode in this region.
Over 15 prominent contract research organisations (CROs) are now
operating in India attracted by her ability to offer efficient R&D
on a low-cost basis. Thirty five per cent of business is in the field of
new drug discovery and the rest 65 per cent of business is in the
clinical trials arena. India offers a huge cost advantage in the
clinical trials domain compared to Western countries. The cost of hiring
a chemist in India is one-fifth of the cost of hiring a chemist in the
West.

The future of Indian pharmaceutical sector looks extremely positive.
Indian pharma companies are vying for the branded generic drug space to
register their global presence. Several Indian pharmaceutical companies
have acquired companies in the US and Europe and many others are raising
funds to do so. For example, Ranbaxy acquired Romania's Terapia, Ethimed
NV of Belgium and GSK's generic business Allen SpA in Italy. Dr Reddy's
acquired German generic drug maker Betapharm. Companies like Glenmark
Pharma, Lupin, Aurobindo and Jubilant Organosys are on the lookout for
lucrative acquisitions.